Prysmian, the world's largest cable maker, has signed a substantial 10-year agreement valued at $5.5 billion to supply optical fiber and connectivity components to Molex, a subsidiary of Koch Industries. This deal is focused on supporting the rapidly expanding data center market, addressing the increasing demand for high-performance connectivity within these crucial digital infrastructure hubs.
This long-term contract represents a significant strategic move for Prysmian, aiming to capitalize on the boom in data center construction and upgrades. The deal is expected to contribute to Prysmian's previously stated projections of achieving more than $5 billion in revenue from long-term hyperscaler deals and will involve an investment exceeding $1.2 billion over three years to increase optical cable capacity by 40-50%. This expansion is primarily directed towards North America, a key growth region for the company.
The agreement with Molex is part of a broader strategy by Prysmian to secure long-term contracts with major infrastructure providers and hyperscalers, as competition intensifies in the data center supply chain. Prysmian's CEO, Massimo Battaini, has indicated that such deals will help the company surpass its 2026 adjusted EBITDA guidance of between 2.63 billion euros and 2.78 billion euros. The company is also considering a new copper rod facility in Texas with an investment of $100 million to $200 million to further support North American expansion.
This development comes after Prysmian's acquisition of Encore Wire for approximately $4.15 billion, which also strengthened its North American market position. J.P. Morgan recently placed Prysmian on a positive Catalyst Watch, citing rising optical fiber prices and potential for significant margin improvements in late 2026 and 2027, driven by such strategic capacity expansions and pricing strength in higher-quality fibers used in data centers. The firm anticipates a formal U.S. capacity expansion announcement and a potential guidance upgrade soon.
